CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
54.88 USD
+0.52 (+0.96%)
54.99 USD
+0.11 (+0.2%)
Taking everything into account, CARR scores 4 out of 10 in our fundamental rating. CARR was compared to 41 industry peers in the Building Products industry. CARR has a medium profitability rating, but doesn't score so well on its financial health evaluation. CARR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CARR had positive earnings in the past year.
In the past year CARR had a positive cash flow from operations.
Each year in the past 5 years CARR has been profitable.
In the past 5 years CARR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.46%, CARR is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
CARR has a Return On Equity of 27.45%. This is amongst the best in the industry. CARR outperforms 82.93% of its industry peers.
The Return On Invested Capital of CARR (5.09%) is worse than 73.17% of its industry peers.
CARR had an Average Return On Invested Capital over the past 3 years of 8.06%. This is below the industry average of 12.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
Looking at the Profit Margin, with a value of 18.05%, CARR belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Profit Margin of CARR has grown nicely.
With a Operating Margin value of 11.00%, CARR perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
In the last couple of years the Operating Margin of CARR has declined.
CARR's Gross Margin of 27.36% is in line compared to the rest of the industry. CARR outperforms 41.46% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
CARR has more shares outstanding than it did 5 years ago.
CARR has a better debt/assets ratio than last year.
2.2 Solvency
CARR has an Altman-Z score of 2.46. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
CARR has a worse Altman-Z score (2.46) than 75.61% of its industry peers.
The Debt to FCF ratio of CARR is 8.45, which is on the high side as it means it would take CARR, 8.45 years of fcf income to pay off all of its debts.
CARR's Debt to FCF ratio of 8.45 is on the low side compared to the rest of the industry. CARR is outperformed by 63.41% of its industry peers.
CARR has a Debt/Equity ratio of 0.78. This is a neutral value indicating CARR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, CARR is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.57
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CARR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, CARR is doing worse than 87.80% of the companies in the same industry.
CARR has a Quick Ratio of 1.14. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, CARR is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
CARR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.27% yearly.
The Revenue for CARR has decreased by -22.93% in the past year. This is quite bad
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.86% yearly.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
Based on estimates for the next years, CARR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.59% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.74 indicates a rather expensive valuation of CARR.
CARR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. CARR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.75 indicates a rather expensive valuation of CARR.
The rest of the industry has a similar Price/Forward Earnings ratio as CARR.
CARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.1 | ||
| EV/EBITDA | 15.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y5.08%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.79%.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.41. CARR pays more dividend than 85.37% of the companies in the same industry.
CARR's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
CARR pays out 18.56% of its income as dividend. This is a sustainable payout ratio.
DP18.56%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
54.88
+0.52 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.71%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap46.70B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts76.88
Price Target74.11 (35.04%)
Short Float %1.41%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-7.23%
PT rev (3m)-13.24%
EPS NQ rev (1m)-21.32%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 17.75 | ||
| P/S | 2.12 | ||
| P/FCF | 33.1 | ||
| P/OCF | 24.72 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.38 |
EPS(TTM)2.78
EY5.07%
EPS(NY)3.09
Fwd EY5.63%
FCF(TTM)1.66
FCFY3.02%
OCF(TTM)2.22
OCFY4.04%
SpS25.92
BVpS17.05
TBVpS-9.08
PEG (NY)N/A
PEG (5Y)0.97
Graham Number32.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.46 |
F-Score5
WACC8.9%
ROIC/WACC0.57
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 3 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 19.74 and the Price/Book (PB) ratio is 3.22.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -2.27% in the next year.